Employers continue to face a wave of lawsuits alleging violations of various “wage and hour” statutes (overtime pay, meal and rest breaks, etc.). Employment liability insurers have uniformly denied coverage for these claims and have tightened applicable exclusions. Some insurers now offer wage and hour coverage, but these policies and endorsements usually provide only very restricted defense cost coverage. A new source of coverage now exists, courtesy not of insurers but of revisions to the California Labor Code.
New Labor Code §558.1, effective January 1, 2016, appears to create individual liability for violation of California’s wage and hour statutes.